Sovereign debt crises:
a. always occur when debt/GDP ratios reach a specific point.
b. mean that the optimal budget deficit is zero.
c. can lead to foreign capital flight.
d. can lead to exchange rate depreciation.
e. both c and d.
E
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The charge that Standard Oil engaged in "predatory pricing"
a. was the driving force behind the Supreme Court's decision to break up the company. b. makes little sense from an economic perspective. c. is still subject to debate. d. All of the above are correct. e. Only b and c are correct.
An increase in the price of a resource will cause a rightward shift of its supply curve
a. True b. False
The contribution of an additional worker to a firm's ____, is the worker's contribution to revenue minus the worker's ____
a. profits; wage b. output; wage c. profits; marginal productivity d. output; marginal productivity
Which of the following claims concerning the importance of effects that explain the slope of the U.S. aggregate-demand curve is correct?
a. The exchange-rate effect is relatively small because exports and imports are a small part of real GDP. b. The interest-rate effect is relatively small because investment spending is not very responsive to interest rate changes. c. The wealth effect is relatively large because money holdings are a significant portion of most households' wealth. d. None of the above is correct.